Question

Describe the contribution of the oil abd gass sector to the economy of Ghana

Answer 1

Oil and gas resources offer tremendous potential for low-income countries to expand economically, but inadequate use of these resources may have dire implications for the resource-endowed nation's foundations. Ghana's exploration of oil and gas is as critical as the policies and initiatives to ensure the nation's optimum benefits. In view of the medium-term policy framework, the Ghana Mutual Growth and Development Agenda (GSGDA), this paper analyses the sustainability of petroleum production. In specific, using ordinary least squares ( OLS) regression, the economic contribution of oil and gas to Ghana's GDP and sustainable petroleum revenue investment options were studied. The evidence suggests that petroleum is not a significant contributor to Ghana's GDP at current production levels, after adjusting for the contribution from other sectors of the economy. The steady appreciation of the real effective exchange rate in Ghana between 2010 and 2013 has contributed to a decrease in the productivity of the non-oil sector and a fall in the agricultural sector's contribution to GDP, further eroding the net impact of oil production. The investment of petroleum revenues in the non-oil field and the extension of the export base represent a feasible alternative for the exploitation of petroleum revenues.

1.Government Strategy and Control of petroleum resources
The socio-economic opportunities provided by the development of petroleum are massive. Intergenerational gatherings. The criteria are the sustainable and optimal exploitation and utilization of the benefits extracted from these scarce resources. Necessary (Djiofack and Omgba, 2011). Appropriate strategies, plans, and programs of action and rigorous actions by way of appropriate interventions, The accomplishment of this aim are inevitable for the state, institutions, civil society, and societies. Toft and Toft In deciding the terms and conditions, Duero (2011) outlines the key position of the politically defined policy agenda. In the offshore petroleum field and the investment threats faced. Similarly, the upstream exploitation of oil and gas in Ghana is strongly affected by the appropriateness of the Ategy of the government.

2. Methodology
The foundation of this paper is the positivist theory. Instead of views, the alignment of this model can be due to the use of analytical evidence, the study of associations within the data gathered, and the creation of ideas that relate to the broader unit. As cited in Easterby-Smith et al. ( 2008), Pugh (1983) used a comparable philosophy in his
Analysis of production organizations in the West Midlands. The theory stresses quantifiable evidence, according to Biggam (2008), which is not impaired by predictable human actions, thus making outcomes more factual and accurate.

3. Discussion
In isolation, petroleum production contributes to the growth of the Ghanaian economy through GDP, support services, and the creation of human resources. For eg, approximately $ 3 billion ( US$ 2.811 billion) has been accrued to the state of Ghana by petroleum royalties from 2010 to the end of 2014. For eg, Tullow Oil Ghana gave 114 scholarships in 2013 alone and the organization is expected to fund them. Per year, at least 50 Ghanaian people seek different careers in the petroleum industry. For common aims, GNPC and the Ministry of Energy and Petroleum have scholarship and training programmes. Capacities
Commendable features of the local content arrangement are construction programmes in various aspects of the oil and gas value chain.

4. Conclusion and Policy Implications
In an attempt to extract its hydrocarbon deposits, Ghana joined a host of other African nations, expecting a change in economic conditions under a structural transition agenda rooted in a structural transformation agenda.
The Ghana Mutual Growth and Development Agenda (GSGDA) is a medium-term development strategy carried out in the same year that commercial oil production began. The degree to which long-term sustained impacts will be accomplished depends on the contributions made to economic growth by the oil sector's activities and outputs, the potential to deter the Dutch disease, and the manner in which proceeds are spent to produce long-term wealth that will benefit future generations.